Investors appear to be concerned about Xi's precedent-breaking reappointment as China's leader.
On Sunday, Xi confirmed his reappointment as the party's general secretary while revealing the six loyalists who would be part of the Politburo Standing Committee , the party's top political body—Li Qiang, Zhao Leji, Wang Huning, Cai Qi, Ding Xuexiang, and Li XiXi's new centralized strength, as he surrounds himself with his acolytes, gives more power to the Chinese authoritarian leader while also raising concerns in the market over the president's future policies.
But the likely continuity of Xi's current policies in the future means the Chinese leader won't be backing away from his"zero-COVID" policy, which has paralyzed businesses and entire cities across the country and has proven to have a devastating impact on China's economy as well as raising unhappiness among the population.
"The future of the COVID Zero policy remains an open-ended question. Now with power more concentrated at the top, this decision hinges even more on President Xi's views," the report by Bank of America said. The loyalty of the members of the PSC to Xi also makes it likely that the president would be unchallenged in his decisions, suggesting that policies that could be harmful to the Chinese economy and businesses might get the go-ahead.
"We know perfectly well what his intentions are, his intention is not to focus on growth, but to focus on making the economy strong and making China not so reliant on the West for technology," Professor Steve Tsang, director of the School of Oriental and African Studies China Institute at SOAS University of London, told"This is what he wants to do, the problem is how many people believe he can do that. [...
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